Viacom Hits Wrong Note

By

Martin Peers

Updated Nov. 13, 2010 12:01 a.m. ET

Playing videogames takes up a lot of time and money. Just ask Viacom Chairman Sumner Redstone. His family company lost roughly $800 million on Midway Games and now Viacom has blown more than $300 million on Rock Band maker Harmonix.

That isn't an argument for entertainment companies to turn off the game machine, however. Given the growth potential of sectors like casual online games, where Viacom remains a contender, the...